Balance sheets

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Blog

20AUG 2019

Why we chose not to jump on board Thomas Cook

As Thomas Cook’s shares grew cheaper and cheaper, two rounds of research raised a number of ‘red flags’ that, for us, made the travel giant unattractive as an investment no matter how low the share price went

2019

FEBRUARY

14FEB 2019

Blog

Fyre alert – value lessons from a doomed music festival

A number of investment lessons can be taken from Netflix’s new documentary about a tech entrepreneur’s ambitious attempts to stage a luxury music festival on a tropical island

12FEB 2019

Blog

Why you should, frankly, give a dam about company balance sheets

When we analyse a business, we want to ensure it is as much protected from bad news as is possible – in effect that its balance sheet is able to act as a dam against inevitable periods of market turbulence

2018

OCTOBER

25OCT 2018

Blog

It’s not just the devil – good results are in the detail too

Great ideas can lose their power if they are not properly executed, which is why medical staff wash their hands in hospitals – and value investors work hard to analyse the details of company balance sheets

22OCT 2018

Blog

Why this Chinese oil giant subsidiary may not be as great as it looks

Financial strength is a crucial consideration for value investors. Here is an example of the kind of work that can be necessary to build up a proper picture of a company’s health from its balance sheet

AUGUST

23AUG 2018

Blog

The Strangely deep-value story at the heart of the Marvel empire

The contrarian approach to investing that helped Marvel evolve from struggling comic-book business to cinematic superpower is worthy of one of the franchise’s characters – Dr Strange

2017

OCTOBER

27OCT 2017

Blog

The investment decision that haunts us most

As Halloween approaches, we remember a dream stock that turned into a nightmare after an unexpected turn of events left us without a ghost of a chance of making our money back

AUGUST

22AUG 2017

Blog

What makes a retail stock an attractive value investment?

In addition to a suitably cheap valuation, another important factor for value investors is the strength of a business’s balance sheet and particularly the amount of borrowing it may – or may not – reveal